Many New Zealanders can tell the Government exactly how to fix the problems of housing affordability and much else: stop immigration. The Government clearly has no intention of doing so.
In the Budget publications this week there are facts, figures and graphic illustrations of the level of net immigration the country is receiving. Six months ago it was forecast to peak at 62,700 for the year ending next month. Now the forecast peak is 70,700. The country has been enjoying annual immigration gains most years since the turn of the century but the previous peak, in 2003, was 40,000.
The latest rise started after a slight net loss of people in 2012 and it has been steeply climbing ever since.
The Treasury reports that about two thirds of the population gain is immigration, a third is lower emigration. It is now forecasting a slower fall in the annual figures than it did six months ago and does not expect annual net migration to return to its previously "normal" level of about 12,000 until 2019. Consequently, it sees little prospect of house prices relenting within the next three years.